Facebook’s Libra to Influence Money? People’s Bank of China Steps Up Plans for Countrywide Crypto

During Peking University’s Institute of Digital Finance’s Conference, the Director of People’s Bank of China (PBoC), Wang Xin questioned the extent to which Facebook’s Libra currency can impact the international monetary system reports news outlet, South China Morning Post.

In particular, Wang Xin wonders whether Libra has the potential to function like traditional money and, if so, whether it has the ability to bring an impact on policy-making, cross-border payments, etc. It seems like some fear has been induced in China as a whole, as the country is now going back to the drawing board in relation to a countrywide cryptocurrency, which initially began in 2014.

Here’s as per Wang Xin’s quotes:

“If [Libra] is widely used for […] cross-border payments in particular, would it be able to function like money and accordingly have a large influence on monetary policy, financial stability and the international monetary system.”

Ever since Facebook released Libra’s white paper, PBoC has been watchful of the former’s endeavors reveals Wang Xin. This doesn’t come too much of a surprise given the country’s established research institution, which came into full form as a way to study cryptocurrencies, to begin with.

According to the South China Morning Post, many fear that Libra might become a competitor within the international currency sector, especially considering the number of organizations that are since affiliated with it so far. This being said, it seems like problems may arise as a result.

More specifically, Wang Xin has since warned is that at the end of the day,

“There would be in essence one boss, that is the US dollar. If so, it would bring a series of economic, financial and even international political consequences.”

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